Best time ot invoice? Best time ot invoice?
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  1. #1

    Nervous Newbie


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    Default Best time ot invoice?

    Hi, I formed my company in Dec 2011 and I pay a seperate employee a monthly salary - I have yet to pay myself anything. I was wondering if it makes any difference if I invoice before 5 April or not as I want to withdraw dividends for myself before 5 April tax year end (my personal allowance).

    I wasnt sure if there is any correlation between withdrawing income and company tax year end which in my case is Nov 2012.

    Also best way to withdraw the income, do I class it as dividend or a salary?

    thanks

  2. #2

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    Quote Originally Posted by jubilee View Post
    Hi, I formed my company in Dec 2011 and I pay a seperate employee a monthly salary - I have yet to pay myself anything. I was wondering if it makes any difference if I invoice before 5 April or not as I want to withdraw dividends for myself before 5 April tax year end (my personal allowance).

    I wasnt sure if there is any correlation between withdrawing income and company tax year end which in my case is Nov 2012.

    Also best way to withdraw the income, do I class it as dividend or a salary?

    thanks
    You have a LTD for 4 months and still don't know the best way to withdraw income? How on earth can you run a company when you don't have the faintest clue how to even get the money out properly??

    Read the first timers guides on the right hand side which will explain everything you need to know.

    You also need to get an accountant. You are legally reponsible for the finances of you company and it appears your level of knowledge alone is not enough. The accountant will not only sort out your mess for you but will also advise on many other aspects of your accounts you are unaware of so is likely to save his fees twice over in the first year.

    There is a list of good contractor accountants on here. Pick one of those not a local bod, they know contracting.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

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    Quote Originally Posted by jubilee View Post
    Hi, I formed my company in Dec 2011 and I pay a seperate employee a monthly salary - I have yet to pay myself anything. I was wondering if it makes any difference if I invoice before 5 April or not as I want to withdraw dividends for myself before 5 April tax year end (my personal allowance).

    I wasnt sure if there is any correlation between withdrawing income and company tax year end which in my case is Nov 2012.

    Also best way to withdraw the income, do I class it as dividend or a salary?

    thanks
    Eh?

    Best ask your Accountant via an interpreter.

  4. #4

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    Quote Originally Posted by jubilee View Post
    Hi, I formed my company in Dec 2011 and I pay a seperate employee a monthly salary - I have yet to pay myself anything. I was wondering if it makes any difference if I invoice before 5 April or not as I want to withdraw dividends for myself before 5 April tax year end (my personal allowance).

    I wasnt sure if there is any correlation between withdrawing income and company tax year end which in my case is Nov 2012.

    Also best way to withdraw the income, do I class it as dividend or a salary?

    thanks
    You ask whether you should invoice before April 5th. Well yes, obviously if you wish to pay yourself something before April 5th.

    In addition, you state that you also employee a seperate person who you pay monthly.

    What does not add up in any way, shape or form is how on earth you are paying somebody when you haven't actually invoiced anything.
    What happens in General, stays in General.
    You know what they say about assumptions!

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    Quote Originally Posted by jubilee View Post
    Hi, I formed my company in Dec 2011 and I pay a seperate employee a monthly salary - I have yet to pay myself anything. I was wondering if it makes any difference if I invoice before 5 April or not as I want to withdraw dividends for myself before 5 April tax year end (my personal allowance).

    I wasnt sure if there is any correlation between withdrawing income and company tax year end which in my case is Nov 2012.

    Also best way to withdraw the income, do I class it as dividend or a salary?

    thanks
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  6. #6

    Ddraig Goch


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    Quote Originally Posted by jubilee View Post
    Hi, I formed my company in Dec 2011 and I pay a seperate employee a monthly salary - I have yet to pay myself anything. I was wondering if it makes any difference if I invoice before 5 April or not as I want to withdraw dividends for myself before 5 April tax year end (my personal allowance).

    I wasnt sure if there is any correlation between withdrawing income and company tax year end which in my case is Nov 2012.

    Also best way to withdraw the income, do I class it as dividend or a salary?

    thanks
    Some basics need to be sorted out here methinks.

    Just answering one small point, in terms of dividends, if its declared before April 5th then it will count as personal income in that tax year.

    Like someone said, get an accountant or your going to be in deep trouble soon.
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  7. #7

    More time posting than coding


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    Assuming you are working on a contract via an agency, why are you not invoicing monthly anyway? Why leave your money with the agency? There is a small risk here if the agency goes belly up...

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